Price jumped higher in the morning, reaching the 1.2618, but the buyers weren’t able to keep the price there and now is trading in the red again. Is the rebound completed? We’ll see what will happen on the USDX in the upcoming hours because the index has started to drop again after the release of the United States data.

The dollar index is approaching the 92.55 yesterday’s low, could also hit the 92.49 major static support, only a rejection from this level will signal a reversal, otherwise the USDX will drop towards fresh new lows. The 92.49 represents a critical support level, a valid drop below this obstacle will confirm a further drop in the upcoming months, but I’m still confident that we’ll have a rebound even if the rate will drop below this level, we could have a false breakdown.

The US data failed to lift the greenback, the ISM Non-Manufacturing PMI registered a monstrous drop , from 57.4 to 53.9 points, much below the 56.9 estimate, while the Challenger Job Cut dropped by -37.6%.

The Unemployment Claims dropped from 245K to 240K in the previous week, more below the 242K estimate, the Final Services PMI increased from 54.2 to 54.7 points, beating the 54.2 estimate, while the Factory Orders rose by 3.0%, more versus the 2.9% estimate, but unfortunately the USD wasn’t impressed at all.

Price is pressuring the broken 50% Fibonacci line (descending dotted line), could maintain a bullish bias if will stay above this obstacle. Is trading within a descending channel, has confirmed the downside line of this pattern and now is somehow expected to increase a little targeting the upside line of this channel.

Has found strong support right below the 1.2460 major support and under the lower median line (lml) of the blue descending pitchfork. A minor accumulation above the mentioned support level will confirm a reversal on the sort term, we cannot say how long the rebound will be because is still under pressure because is located below some important resistance levels.